The Apples Analogy

This simple analogy will illustrate some of the fundamental ideas that underlie wealth creation.

I read this thread, shared it with friends and absolutely am in love with the message here:

This message is simple enough for a 1st grader to understand.

100 people produce and consume 100 apples per year.

They are breaking even. They are simply surviving.

1 person invents a new method for producing apples.

Now apple production doubles and this person takes 50% of everyone's second apple.

The person gets 50 apples per year and becomes insanely wealthy. Everyone else now gets 1.5 apples per year up from 1... a 50% increase!

Now everyone can spend their excess time and energy finding new and better ways to produce even more apples and compound this growth for more progress.

Better still, the person who figured out the original method and became rich with 50 apples per year can take a portion of their apples (if they choose) and use them to find/research/fund new ways to produce even more apples!

Get it?

Find the optimization. Find the methods. Always think outside the box!